The Cryptocurrencies are under pressure. The South Korean authorities yesterday searched the offices of the country’s two largest crypto exchanges. There are also rumours that South Korea wants to close all domestic crypto exchanges. However, it´s questionable whether this will happen in the end. The Ministry of Finance – which is also part of the Crypto Task Force – does not agree on the ban with the Ministry of Justice.
Ripple and Ethereum
However, the recent events in South Korea were enough to cause a panic. Ripple hit a low of $1.50, and even Ethereum – among the cryptographic currencies with the strongest performance in recent days – came under pressure. South Korea is one of the countries with the largest crypto volume, and a complete ban would hit currencies like bitcoin, ripple and ethereum hard.
After the rapid increase, it´s not surprising that many speculators want to start taking profits. Even if the panic around South Korea might be exaggerated, it makes more sense to wait until the situation calms down a bit than to try to predict the low. As with forex trading, the same applies here: Don´t catch a falling knife.
Even the smaller cryptocurrencies don´t look good: Cardano consolidated around $0.70, while Stellar dropped to a low of $0.50. IOTA holds up relatively well – but didn’t have a big rally like Cardano and Stellar either. These still have potential, but patience is needed.